The Organization of Petroleum Exporting Countries is going to have to cut production to keep crude oil prices at a reasonable level, an energy consultant said. Crude oil prices for the Brent trade classification this week dropped to less than $100 per barrel for the first time since July. The OPEC basket price, a representation of the cartel's export grades, is less than $100 as well.
Ali Aissaoui, a consultant at the Arab Petroleum Investments Corp., told Bloomberg News that OPEC's top producer, Saudi Arabia, needs prices around $94 per barrel to keep its federal budget in check. Iran, meanwhile, needs a price per barrel of around $125 to keep its budget balanced............................................Full Article: Source